The best way on how to improve credit score quickly if you have a bad credit record is to perform self-credit repair! Self-credit repair is a procedure where you argue unfavorable items on your credit report with the three main credit bureaus. This will involve sending argument letters to the three credit agencies to fix your credit score.
When these letters are received by the three credit agencies, they will try to examine your argument with your lender who is reporting about the negative items on your credit report. They will have 30 days to react and if they fail to give supporting evidence within the time given, the negative items will be removed from your credit report.
This is actually a simple process to fix your credit score. If you have ever been turned down for a loan or insurance that you wanted, you know that it does not sound right to you. In most cases, there may be some items that are reporting incorrectly in your credit report and you should start investigating and do a credit repair yourself in a reasonable time frame.
How to fix Your Credit Yourself
The most important thing you need to do right away is to obtain a complete history of your credit report to understand what has been going on in the past. Look closely to locate each item that could cause a red flag or lower your FICO scores on your credit report.
What am I looking for precisely?
While looking over your credit information you want to first locate any discrepancy. Mistakes on your information are accounts that contain information that is not correct. It might be something regarding behind payment being recorded and you know you were never late for this payment. Another area you may also want to look at to fix your credit score is any over limit items that are reported incorrectly and the credit bureaus assume that you are consistent in excess of your credit limit.
In addition, check for disparaging information such as delayed payments, charged of accounts, sets, rulings and economic failure. All of these will drag your credit score down quick.
What Steps Should I perform to Correct These Accounts?
This is a crucial step on how to improve credit score. First, create a list of these accounts so they are separated from your fine accounts. Make sure that you position these accounts so that the oldest accounts are listed first and the latest accounts are listed last.
Then, you will need to issue credit argument correspondence letters to the first two accounts for each credit agency that is reporting the unfavorable information on these account. This is essential since there are three agencies and they all report in a different method so you want to make sure that you are not transferring an argument letter to an agency that is not reporting wrongfully about you!
What should go on a Credit Argument Correspondence Letter and Why I am Writing It?
This correspondence is essentially telling the agencies that you do not have the same opinion with the information they are reporting in your credit report. The credit argument letter you are writing should contain your account number, name, address and social security number.
How Will a Correspondence Assist Me to Repair My Credit?
Once your correspondence is received, the credit agencies, under Federal Law, have to examine this information with the original lender. If the original lender does not or will not give evidence of the information, then the agencies will have to eliminate the negative item from your report. Once the negative item on your credit report is detached, your scores will increase and your credit will be repaired a little. In some occasions, your score may jump up 20 to 50 points!
This method on how to raise your credit score may vary depends on each individual situation and the nature of the negative item you originally have. Practicing on different available tools is very often the key to successfully fix your credit score.